SCHEDULE 2 - Grouping provisio SCHEDULE 2 - Grouping provisions

[Schedule 2 Renumbered by No. 110 of 1986, s. 10 ]

Section 4

1.   Grouping of corporations

[Schedule 2 Amended by No. 42 of 2001, Sched. 1, Applied:15 Jul 2001] For the purposes of section 4 (1) , 2 corporations constitute a group if they are related to each other under section 50 of the Corporations Act.

2.   Grouping of commonly controlled businesses

(1) A reference in this clause to 2 businesses does not include a reference to 2 businesses both of which are owned by the same person, not being a trustee, or by the trustee or trustees of a trust.

(2) For the purposes of section 4 (1) , where the same person has, or the same persons have together, a controlling interest under subclause (3) in each of 2 businesses, the persons who carry on those businesses constitute a group.

(3) For the purposes of subclause (2) , the same person has, or the same persons have together, a controlling interest in each of 2 businesses if that person has, or those persons have together, a controlling interest under any of the following paragraphs in one of the businesses and a controlling interest under the same or another of the following paragraphs in the other business:

(a) a person has, or persons have together, a controlling interest in a business, being a business carried on by a corporation, if the directors, or a majority of the directors, or one or more of the directors (being a director or directors who is or are entitled to exercise a majority of voting power at meetings of the directors), of the corporation are or is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions, or wishes of that person or of those persons acting together;

(b) a person has, or persons have together, a controlling interest in a business, being a business carried on by a corporation that has a share capital, if that person or those persons acting together may (whether directly or indirectly) exercise, control the exercise of, or substantially influence the exercise of, 50 per cent or more of the voting power attached to voting shares issued by the corporation;